Wheeler greenshoe lifts convertible preferred units to $20.7 million

By Marisa Wong

Madison, Wis., May 21 - Wheeler Real Estate Investment Trust, Inc. announced that the underwriters of its recently closed offering of 9% series B convertible preferred stock and warrants have exercised in full their $2.7 million over-allotment option.

The greenshoe exercise resulted in the sale of 108,000 shares of convertible preferreds and warrants to purchase 129,600 shares of common stock, according to a press release.

As previously announced, Wheeler priced an $18 million public offering of preferred units on April 25.

Maxim Group LLC and Newbridge Securities Corp. were the joint bookrunning managers.

The company sold 144,000 preferred units of five convertible preferreds and six warrants at $125.00 per unit. The preferreds are convertible into common stock at $5.00 per share, a 12.61% premium to the April 24 closing share price of $4.44.

The preferreds will automatically convert into common stock if the 20-day volume-weighted adjusted closing price of the company's common stock exceeds $7.25 on the Nasdaq Capital Market.

Each five-year warrant is exercisable at $5.50. The strike price is a 23.87% premium to the April 24 closing share price.

According to the latest announcement, the company intends to use the additional capital, along with the original proceeds from the public offering, to acquire three properties. Remaining proceeds will be used for future acquisitions and general working capital.

The preferreds and warrants trade under the symbols "WHLRP" and "WHLRW," respectively.

Wheeler is a Virginia Beach real estate investment trust.

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